RBI Maintains Steady Repo Rate Amid Inflation Concerns in April 2026 Meeting

Q: What is the current repo rate set by the RBI?

The current repo rate is expected to remain at **5.25%**.

Original: RBI MPC Meeting 2026 LIVE: Sanjay Malhotra-led MPC likely to keep repo rate steady amid inflation worries

Mint•Apr 8, 20262 min

In a Nutshell

The Reserve Bank of India (RBI), led by Governor Sanjay Malhotra, is expected to keep the repo rate steady at 5.25% during its April 2026 monetary policy meeting. This decision comes amid rising inflation concerns due to geopolitical tensions and fluctuating crude oil prices.

Key Points

01RBI likely to maintain repo rate at 5.25%.
02Geopolitical tensions from the US-Iran conflict affecting economic stability.
03Inflation expectations raised for Q1 and Q2 FY27.
04Previous repo rate cuts totaled 125 basis points since February 2025.
05GDP growth forecast for Q1 FY27 increased to 6.9%.

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Full Summary

The Reserve Bank of India (RBI) is set to announce its monetary policy decision today, April 8, 2026, during its first bi-monthly meeting for FY27. Led by Governor Sanjay Malhotra, the Monetary Policy Committee (MPC) is expected to keep the repo rate unchanged at 5.25% amid rising inflation concerns influenced by the ongoing US-Iran war, which has led to increased crude oil prices and a depreciating rupee. The RBI has already cut the repo rate by a total of 125 basis points since February 2025. Economists predict a cautious tone from the MPC, especially with inflation estimates for Q1 FY27 raised to 4.0% and for Q2 FY27 to 4.2%. Additionally, the GDP growth forecast for Q1 FY27 has been increased to 6.9%. Market participants are keenly awaiting the RBI's insights on growth and inflation expectations to gauge future monetary policy direction.

Key Figures

5.25%

Current repo rate expected to be maintained

125 basis points

Total repo rate cuts since February 2025

6.9%

Revised GDP growth forecast for Q1 FY27

4.0%

Revised inflation estimate for Q1 FY27

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Why It Matters

The decision to maintain the repo rate at 5.25% is likely to stabilize borrowing costs for consumers and businesses, potentially influencing home loan EMIs and other credit rates.

Who is affected

homebuyers, businesses, and consumers seeking loans

What to know

Individuals considering loans should monitor interest rates and economic forecasts closely.

FAQ

The current repo rate is expected to remain at 5.25%.

The conflict has led to a surge in crude oil prices, impacting inflation and the value of the rupee.

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